Snap On Franchise Agreement

In snap-on, the existence of independent accounting consulting for the franchisee to allow the interpretation and understanding of the thematic projections in the table was fatal in the case of the franchisee. The existence of the legal requirement for a franchisee to obtain an independent consulting certificate (from an authorized consultant) was a requirement in 2008 (see Trade Practices – Franchising Regulations 11) and remains a regulatory requirement under the new Franchise Code of Conduct (which came into force on January 1, 2015). Financial support: The franchisee and snap-on credit offer certain financing programs described in the FDD. If franchisees meet all requirements, Snap-on Credit franchisees may lend funds to cover certain initial investment and expense costs of their franchise. Snap-on Credit can also lend funds to franchisees to cover upfront investment costs and expenses related to an additional franchise, to purchase additional inventory, finance their RAs or recapitalize their business. Snap-on Credit is the property of Snap-on Incorporated. Commitments and restrictions: Franchisees will do their best to aggressively promote and fully expand the sale of products at stops on their call list. Franchisees introduce a stock of products in at least the minimum quantity set in the Snap-on program in order to maximize their product sales and provide the service expected by their customers. Franchisees must refrain from any activity that would be contrary to these purposes and they will give these purposes all the necessary attention and commercial effort. Franchisees will not sell or give away products directly in competition with products manufactured by or for the franchisee, with the exception of goods that have been taken over by franchisees. In addition, franchisees will refrain from selling items that are inappropriate or incompatible with a business that sells tools and equipment. Franchisees can only sell products to customers at stops on their call list. Franchisees help the franchisee fulfill all product warranties, which means that franchisees provide tool and equipment services at the customer`s place of business.

Training Overview: Before franchisees start operating the franchise, the store management franchisor offers training. Franchisees or their manager (in case of additional franchise) must complete franchised snap-on store management training. The training currently consists of more than 84 hours of attendance training and 135 hours of on-the-job training. The training school is currently located in Grapevine, Texas. Between five and six months after franchisees begin operations, franchisees must participate in the Store Management Training – Level 2 franchise at the franchisee`s training school in Grapevine, Texas, or another location designated by the franchisee. This consists of about 14 hours of training (usually on Fridays and Saturdays) and should reinforce the previous training after the franchisees have gained real experience in the operation of their franchise. As soon as franchisees begin operating their franchisee, the franchisee offers, but does not require, franchisees and, where applicable, their branch manager, to participate in ongoing training, including franchise team meetings (if provided by the franchisee). The franchisor usually holds these meetings once a quarter, but may hold them more or less often if it deems it appropriate. .

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